Autodiva – Manufacturer electric car from China, Net, facing major challenges in the Thai market. A significant drop in sales forced the company to take drastic steps by considering layoffs (Layoffs) to 400 employee. This step is part of a large-scale efficiency measure to balance the company's financial condition.
Quoting reports from local media The Nation, parent company Neta, Hozon Auto, recorded a decline in sales of up to 46% in the period January to November 2024 compared to the previous year. Throughout 2024, Neta only managed to sell 6.534 unit of the Neta V model, V-II, and X.
This impact is not only felt in the sales sector, but also affected their factory operations in Thailand. According to reliable sources, Layoffs will be carried out at the Neta Auto Thailand factory, which is currently using Bangchan General Assembly facilities in Min Buri district, Bangkok, to produce their electric vehicles.
Financial Pressure Behind the Decision
Hozon Auto is reportedly experiencing liquidity pressure due to falling sales figures. These financial problems even forced the company to stop production at their factory in Zhejiang, China. A similar policy is now starting to spread to operations in Thailand.
The net loss experienced by Neta Auto Thailand is also an indicator of the financial difficulties the company is facing. On 2023, The company recorded a loss of 1,8 billion baht (around Rp 856 billion), inversely proportional to profit 80,77 million baht (Rp 38 billion) that they pocketed on 2022.
In the last five years since it was founded in 2019, Neta Auto Thailand's accumulated revenue reached 7,78 billion baht (Rp 3,7 trillion). However, accumulated losses over the same period reached 1,72 billion baht (Rp 818 billion).
Restructuring Efforts
With the number of losses continuing to increase, Hozon Auto is now focusing on restructuring steps. Apart from layoffs of employees, Efficiency is also carried out by reviewing operations in their factories. Meanwhile, The sustainability of operations in Thailand is a big question mark considering high operational costs and weak market demand.
The decision to cut employees as much as possible 400 people are considered a difficult but necessary step to maintain business sustainability. Companies are expected to be more flexible in facing challenging market conditions.
Challenges of the Electric Car Market in Thailand
The decline in sales experienced by Neta reflects the increasingly competitive dynamics of the electric car market in Thailand. The presence of other big brands that offer technology and competitive prices means consumers have more choices.
Even though Neta had recorded growth in previous years, Decreasing purchasing power and less effective marketing strategies also contributed to the decline in sales figures this year.
Even when faced with difficult situations, Hozon Auto hasn't given up completely. Companies continue to evaluate their business strategies, including the potential to introduce new models or improve production efficiency to reduce costs.
The sustainability of Neta's business in Thailand will depend heavily on the company's ability to adapt to market conditions. Consistency in providing added value to consumers and innovation in the field of electric car technology can be the key to recovery.
The steps taken now may seem painful, but it is hoped that it will provide a stronger foundation for Neta Auto's future in the international market, including in Thailand.
